Intel passed on investing in OpenAI in 2017: report
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- Intel (NASDAQ:INTC) passed on investing in generative artificial intelligence startup OpenAI as far back as 2017 for several reasons, Reuters reported.
- Intel, then led by Chief Executive Bob Swan, decided against the investment in part because Swan did not think generative AI models would come to market in the near term, the news outlet added, citing three sources familiar with the matter.
- OpenAI wanted to attract Intel as an investor because it could have cut their reliance on Nvidia (NVDA), which supplies graphics processor units, and let the company build its own infrastructure, the news outlet reported, citing two people familiar with the matter. (Presently, Nvidia owns the vast majority of the market for AI accelerators, used to help train AI models.)
- Separately, Intel’s data center did not want to produce products at cost, Reuters added.
- Intel and OpenAI discussed multiple scenarios for a deal in 2017 and 2018. One such scenario would have seen Intel taking a 15% stake in OpenAI for $1B in cash, while another would have seen Intel take a 15% stake in the company if it made products at cost.
- Intel and OpenAI did not immediately respond to a request for comment from Seeking Alpha.
- Microsoft (MSFT) eventually made a multi-billion dollar investment into OpenAI in early 2023, just a few months after OpenAI launched ChatGPT to the world.